Mexico courting Canadian investment in newly reformed energy sector

CALGARY – Mexico is laying out the welcome mat for Canadian companies to invest in its energy sector, which is opening up to outside investment after more than 75 years of government control.

The country doesn’t have the technical know-how to exploit its unconventional sources of energy and Mexican government officials are in Calgary to invite Western Canadian companies to contribute their expertise and investment.

Oil production from Mexico’s conventional resources has been on the decline for the past decade and the country currently needs to import natural gas, mostly from the United States, despite its vast potential.

A report by the Canada West Foundation and Mexican economic think-tank IMCO says the biggest opportunities for international players are in shale oil and gas, potentially drumming up business for Canadian service and equipment companies.

While Calgary companies may be attracted to Mexico for its geographic proximity and existing trading relationship with Canada, the report says there are security concerns and uncertainty over the energy sector reforms.